Updated on Nov. 13th: Chipmaker Qualcomm Inc has rejected Broadcom Ltd’s record-breaking $130 billion takeover bid. The company said that the proposal has “significantly undervalues Qualcomm’s worth.” Find the complete statement of Qualcomm’s Board of Directors here.
Original story continues from here…
If the proposed deal comes to fruition, we could see the biggest tech deal of all time. Recent rumors have turned out to be true and the wireless chip maker Broadcom Corporation has placed a bid of more than $100 billion to buy Qualcomm Inc. – known for their Snapdragon line of SoCs.
In an announcement, Broadcom has proposed to pay $130 billion which translates to $70 per share of the Snapdragon-maker ($60 in cash and $10 as Broadcom shares will be paid to Qualcomm shareholders).
The two chip companies coming under one roof would make Broadcom world’s third largest semiconductor giant. It could also raise eyebrows at Intel, as Qualcomm and Broadcom already have their individual roots in the smartphone market.
Broadcom said that their latest proposal wouldn’t be affected by Qualcomm’s ongoing deal to acquire NXP Semiconductors NV for $38 million. NXP is a leading chip maker for cars. Broadcom might motivate Qualcomm for the deal considering they might want to leverage NXP’s position in the automobile market.
The news about the acquisition comes right after the reports of Apple having plans to remove Qualcomm hardware from their products. The two tech companies have an ongoing legal battle. As a part of it, Qualcomm tried to ban Apple iPhone sales in the US and China.
What are your views on this record-breaking Broadcom Qualcomm deal? Drop them in the comments.